Third quarter revenues increased 4.7 % to $22.8 million
Nine-month revenues increased 21.3 % to $76.3 million vs. the same period in 2007
Nine-month net income increased 8.0 % to $8.1 million vs. the same period in 2007

2008 Third Quarter Financial Results

Net revenues for the third quarter ended September 30, 2008 reached
$22.8 million, an approximate $1.1 million or 4.7% increase over the same
period of the prior year. As reported earlier this year, the third quarter
for Tongxin International and other companies in the automotive and steel
sectors were hampered by factory reductions in preparation for, and during,
the Beijing Olympics this summer. Government restrictions on power and
emissions were placed on many automotive manufacturers and supply from
steel mills producing cold-rolled steel for the months of July, August and
half of September were also reduced. The effects of these measures
anticipated a slow quarter for the entire sector. As reported by the UK
Telegraph on September 21st, manufacturers including both sectors of
automotive, passenger and commercial, resumed full production in mid
September. Further adding to the challenges for the third quarter were
slowdowns in production as the industry prepared for Euro III emission
regulations in China.

Cost of goods sold were $18.5 million in the third quarter 2008, an
increase of 13 % versus the same period, 2007. Gross profits for the third
quarter were $4.4 million compared to $5.5 million in the third quarter of
2007. Gross margin percentages decreased to 19.2% in 2008 from 25.1% for
the three months ended September 30, 2007. The decrease was directly
attributed to higher costs in raw materials, specifically the 29% price
increase in cold- rolled steel since January 1, 2008. Pricing increases
are yet being passed on to customers, particularly Tongxin's largest
customers in the Company's network of 130 commercial vehicle manufacturers
throughout China. The Company anticipates a return to its standard gross
margins of approximately 25% as steel pricing levels and material increases
in contracts are recorded from recent invoices.

Total operating expenses for the third quarter of 2008 were $1.5 million
versus $1.4 million for the same period in 2007. Operating expenses as a
percentage of revenues were 6.5% compared with 6.2% for the same period,
2007. Operating income and operating margin for the quarter were $2.9
million and 12.6%, versus $4.1 million and 18.9% in 2007.

Net income was $2.1 million, representing a decrease of 16.2% from $2.5
million reported in the same period prior year. The net income reflects
the $175,000 one-time transaction costs recorded by Tongxin International,
Ltd (previously Automotive Acquisition Corporation) for the Company's
business combination with Hunan Tongxin. The Company incurred $521,000 in
taxes for the quarter and pays an effective tax rate of 23.5% for the year.
Corresponding net profit margins were 9.1% for the quarter which
represented a 230-basis point decrease versus the same quarter, 2007. This
decrease was related to increases in raw material costs. Earnings per
share for the quarter was $0.19 based on 11.2 million shares.

"We believe our management team properly estimated the effects of the
factory restrictions and associated demands of the Euro III emission
standards on our sales and shipments in the third quarter," opened Rudy
Wilson, CEO of Tongxin International. "Despite our predictions, we were
encouraged to see a slight increase in revenues quarter over quarter
especially since the same set of circumstances were not present for our
2007 third quarter. Considering the highly-restrictive environment in
which we were operating around the dates of the Olympics, an increase in
revenues during third quarter demonstrates the resilience of the commercial
market and our position as the leading EVBS supplier," Wilson
concluded.

2008 Nine-Month Financial Results

Revenue increased approximately 21.3% to $76.3 million for the nine
months ended September 30, 2008 as compared to $62.9 million for the same
period last year. Operating expenses for the nine months ended September
30, 2008 were $4.7 million compared to $3.9 million for the same period in
2007. Operating expenses as a percentage of revenues remained steady at
6.2% for the nine months ended September 30, 2008 compared to the same
period in 2007. Operating income for the nine months ended September 30,
2008 was $11.9 million, a decrease of 5.3% compared to $12.6 million for
the nine months ended September 30, 2007. Net income was $8.1 million for
the nine months ended September 30, 2008, an increase of 8.0% compared to
same period last year. Net income for the nine months ended September
30th, 2008 reflected an one-time transaction cost of $320,000 associated
with the Company's business combination on April 17th, 2008. Earnings per
diluted share were $0.73 based on 11.2 million shares.

"We are very confident about our business operation and that our team
will reach our guidance of the year. After polling our top customers and
scheduling our builds and deliveries of the fourth quarter, the market has
responded with added demand pent up from manufacturers and their customers
in October. A combination of lowered steel prices, strong order bookings
from our customers and the relaxing of the Euro III compliance time table
should result in a return to our standard margins and pace of business we
experienced during the first quarter of this year," Wilson added.

Balance Sheet and Cash Flow Discussion

As of September 30, 2008, Tongxin International had approximately $19.0
million in cash and cash equivalents. The company maintained a current
ratio of 1.1 to 1 and $12.0 million in accounts receivable on September 30,
2008. Corresponding days sales outstanding (DSO) were 47 days.
Stockholders' equity was $34.2 million on September 30, 2008, representing
an increase of 52.8% versus same period 2007.

The Company has approximately five million warrants with strike price of
$5.00 and callable at $10.00. If exercised, warrants would yield $25.2
million in proceeds to the company.

Business Outlook

Based on its order bookings and accrued demand for the same time period,
the Company anticipates a strong fourth quarter as its customer base
completely resumes production and the extension of timetables to meet Euro
III regulations. Additionally, the Company is completing USGAAP audit of
Meihua Bus for which a framework agreement was signed on July 28th, 2008.
Preliminary results for Meihua Bus indicate higher than expected revenues
and net income for the 2008 year. Tongxin anticipates closing the Meihua
acquisition before year end.

Conference Call

The Company will host a conference call on November 10th, 2008, at 5:00
p.m. EST. To attend the call, please use the dial information below. When
prompted, ask for the "Tongxin International" and or be prepared to provide
the conference ID.

Please dial in at least 10-minutes before the call to ensure timely
participation. A playback will be available through November 17th, 2008.
To listen, please call 800-406-7325 within the United States or +1
303-590-3030 when calling internationally. Utilize the pass code 3941507
for the replay.